Price Stability Act of 2026

Bill Number

H.R. 5396

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2026-06-24: Placed on the Union Calendar, Calendar No. 616.

Last Updated

2026-07-10T14:30:49Z

AI-Generated Summary

Summary of H.R. 5396 (Price Stability Act of 2026)

Purpose

This legislation amends the Federal Reserve Act to eliminate the requirement that the Board of Governors of the Federal Reserve System and the Federal Open Market Committee pursue maximum employment as part of their objectives, focusing solely on stable prices.

Key Provisions

• Section 1: Establishes the short title as the "Price Stability Act of 2026."
• Section 2: Amends Section 2A of the Federal Reserve Act (12 U.S.C. 225a) by striking the phrase "maximum employment, stable prices," and inserting "stable prices."

Significant Changes to Existing Law

• Removes the dual mandate under current law, which requires the Federal Reserve to promote both maximum employment and stable prices.
• Limits the Federal Reserve's statutory objectives to price stability alone.

Potential Impacts

• Government agencies: Alters the operational mandate of the Federal Reserve System, potentially shifting its monetary policy priorities away from employment considerations.
• Citizens: May influence economic outcomes related to employment levels, as the Federal Reserve would no longer have an explicit statutory focus on maximum employment.
• International relations: Could affect perceptions of U.S. monetary policy stability in global markets, though no direct international provisions are included.

Main Stakeholders Affected

• The Board of Governors of the Federal Reserve System and the Federal Open Market Committee.
• Members of Congress involved in financial services oversight.
• Broader economic participants, including businesses and workers, whose interests may be indirectly impacted by changes in Federal Reserve policy focus.

Notable Legal, Constitutional, or Political Implications

• Represents a statutory revision to the Federal Reserve's core responsibilities, which could raise questions about the balance of congressional authority over monetary policy.
• The bill was reported with an amendment in the 119th Congress, indicating legislative adjustments during committee review.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Hill, J. French [R-AR-2]

Cosponsors (2)

Rep. Stutzman, Marlin A. [R-IN-3], Rep. Donalds, Byron [R-FL-19]

Recent Actions

• 2026-06-24: Placed on the Union Calendar, Calendar No. 616.
• 2026-06-24: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-710.
• 2026-06-24: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-710.
• 2026-05-13: Ordered to be Reported (Amended) by the Yeas and Nays: 30 - 21.
• 2026-05-13: Committee Consideration and Mark-up Session Held
• 2025-09-16: Referred to the House Committee on Financial Services.
• 2025-09-16: Introduced in House
• 2025-09-16: Introduced in House

Bill Versions

• Price Stability Act of 2025 — issued 2025-09-16 — PDF (2 pages)
• Price Stability Act of 2026 — issued 2026-06-24 — PDF (4 pages)